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Provision of services

Services entail all work performed against remuneration not considered the delivery of a good.

You perform work in the context of General Expenditure Tax if you perform work and receive corresponding remuneration. The remuneration is the amount you charge to your customer for the service (usually in cash, but possibly also in the form of goods or in a different manner).

Location of the provision of services

In case of a service, the location where the service is provided is also relevant. The service will only be subject to General Expenditure Tax if the service is provided within the BES. This means that it is important to determine whether a service is, or is not, provided on the BES islands. The following applies when determining where a service is provided:

  • a main rule for BES entrepreneurs;
  • an exception to this general rule;
  • a general rule of non-BES entrepreneurs;
  • a number of exceptions to the general rule.

What is the main rule for BES entrepreneurs in case of services?

Services provided by BES entrepreneurs must be provided on the BES island where the service provider is established. BES entrepreneurs are entrepreneurs residing and/or established on the BES islands who provide services to customers residing and/or established on the BES islands.

Example:
A cleaning company established on Saint Eustatius is granted a contract by an entrepreneur established on Saint Eustatius to clean his store established on this island. The cleaning company is considered a BES entrepreneur for the provision of the service (the cleaning). The service is provided on Saint Eustatius.

A cleaning company established on Saint Eustatius is granted a contract by an entrepreneur established on Saba to clean his store established on this island. The cleaning company is considered a BES entrepreneur for the provision of the service (the cleaning). The service is subject to taxes on Saint Eustatius.

What is the exception to the main rule?

For a number of services, the BES entrepreneur will not be considered a BES entrepreneur. These are the following:

  • other services than those listed in the main rule. An explanation: examples are the provision of services to customers not residing and/or established on the BES islands, such as tourists.
  • Services provided to a permanent establishment of an entrepreneur not located on the BES islands. An example: A law firm has an ancillary branch on Curaçao, besides its main offices on Bonaire. The ancillary branch on Curaçao is a permanent establishment. The law firm instructs a painter established on Bonaire to paint both the main offices and the ancillary branch on Curaçao. The painter is a BES entrepreneur when painting the main offices, but not a BES entrepreneur when painting the branch.
  • services provided by the BES entrepreneur from a permanent establishment of his company not located on the BES islands. An example: A law firm has an ancillary branch on Curaçao, besides its main offices on Bonaire. The ancillary branch on Curaçao is a permanent establishment. The law firm will not be considered a BES entrepreneur for the services it provides from the branch.

What is the general rule for non-BES entrepreneurs in case of services?

In case of services provided by non-BES entrepreneurs, we make a distinction between business-to-business (B2B) and business-to-consumer (B2C) services. A B2B service is a service provided to another entrepreneur (not located on the BES islands). This service will be subject to taxes where the entrepreneur purchasing this service resides and/or is established.

Example:
A company established on Bonaire maintains air conditioners. If maintenance is performed to the air conditioners of a company established on Curaçao, the location of the service will be Curaçao. A B2C service is a service provided to a private individual (not residing on the BES islands). This service will be provided at the location where the service provider resides and/or is established.

Example:
A barber established on Saba cuts the hairs of an American tourist. The service is provided on Saba.

Please note: There are various exceptions to these rules. It would be excessive to list all of these here. You can consul the General Expenditure Tax Manual for these exceptions.